Food inflation negative for 7th straight month

· Deflation may reverse for'food and beverages' from January

- SANDIP DAS

RETAIL FOOD INFLATION in India remained in the negative zone (deflation) for the seventh consecutive month in December at 2.71% year-on-year, largely due to the base effect and fall in prices of vegetables and pulses.

However, it inched up sequentially from 3.91% in November, as prices of many food items firmed up.

The consumer food price index (CFPI) declined by 0.24% sequentially in December compared to November, 2025. In December, 2024, the food inflation rate was at 8.39%. Food inflation has been in the negative zone since June, 2025. Analysts expect the food and beverage segment to revert to inflation in January 2026 after printing in the deflationary territory in six of the last seven months.

The inflation in the vegetable category was (-) 18.47% last month compared to (-) 22.2% in November.